Tenants value location, flexibility and direct landlord relationships according to new research launched today from specialist lending bank OSB Group.
Yet The Future Tenant Standard report highlights that many renters say they are feeling the squeeze of the housing stock shortage, rising rents, and negative interactions with landlords and letting agents.
Three quarters (76%) of the 2,500 past, present and future renters surveyed say their current rental tenure suits them. More than half (54%) live in their preferred area, and 74% say they are satisfied with the level of security.
Nearly three quarters (73%) of tenants feel they have been impacted by the lack of available housing and more than a third (34%) report difficulties finding their existing homes. Jason, a 30 year old tenant from London interviewed as part of the research, said: “I felt like I had to pick damaged goods in a bag of damaged goods” when he was searching for his property.
The research shows that while tenants cite the flexibility of renting as an advantage, only 26% say they would prefer to be renting today with the majority hoping to own their own home. While the lure of homeownership is strong, 71% say they are frightened by the size of borrowing required to afford a property.
Jon Hall, Group Managing Director Mortgages & Savings, at OSB Group, said: “The private rented sector is housing the nation. With landlords and tenants across the country facing the challenges of navigating a higher cost of living, and higher interest rate environment, it’s important to look at what is working and what needs to change to help the sector thrive. This research reinforces our ongoing view that the journey to the professionalisation of the private landlord sector is key to helping them deliver the best experiences for the nation’s renters.”
The research highlighted that when tenants and landlords have a direct relationship, satisfaction levels are significantly higher. Just under half (47%) of tenants deal with their landlord directly, and of those, 82% feel like they are treated fairly, and 72% trust their landlord. Independent landlord Suzanne Smith, a founding member of the OSB Group Landlord Leaders Community, agrees that forging strong relationships is fundamental: “The key is having a good relationship with tenants. We are providing their home.”
However, the research shows 59% of tenants have experienced rule breaches like unreasonable financial demands or discrimination from their landlord and a fifth (20%) feel the poor quality of their property has impacted their health.
Ronnell Reffell, Manager, Mortgages Policy at UK Finance, and member of the Landlord Leaders Community, said: “In the UK, home ownership is seen as the pinnacle and renting is seen as a second class tenure. But lots of people rent today and they really want to rent. It’s great for them, and benefits such as not dealing with property maintenance are important for people. The findings of the OSB Group research support our view that it is better for the sector if it becomes more professionalised.”
